Global Ship Lease Reports Results for the Fourth Quarter of 2012

Global Ship Lease Reports Results for the Fourth Quarter of 2012

LONDON, March 11, 2013 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL),
a containership charter owner, announced today its unaudited results for the
three months and year ended December 31, 2012.

Fourth Quarter and Year To Date Highlights

- Reported revenue of $36.2 million for the fourth quarter 2012 and $153.2
million for the full year

- Reported net income of $8.1 million for the fourth quarter 2012, after a
$4.7 million non-cash interest rate derivative mark-to-market gain; net income
for full year 2012 was $31.9 million, after a $9.7 million non-cash
mark-to-market gain

- Normalized net income^(1) was $3.5 million for the fourth quarter and $22.2
million for the full year 2012

- Generated $23.3 million of Adjusted EBITDA^(1) for the fourth quarter 2012,
and $102.2 million for the full year

- Agreed with lenders in November 2012 to waive the requirement to test the
Leverage Ratio until December 1, 2014 and also to include all secured vessels
in the test, whether subject to a charter or not

- Repaid $11.1 million of bank debt during the fourth quarter of 2012; repaid
$57.9 million in the year ended December 31, 2012 and $173.4 million since the
fourth quarter 2009

Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "On the
strength of our stable business model and a 99% utilization rate, we generated
Adjusted EBITDA of $23.3 million for the fourth quarter and continued to
de-lever our balance sheet, repaying an additional $11.1 million of debt. With
all of our 17 vessels fully employed on time charters, we generated Adjusted
EBITDA of $102.2 million during 2012 and utilized our sizeable cash flow to
pay down a total of $57.9 million of debt."

Mr. Webber continued, "With an average remaining lease term of over seven
years for our fleet and contracted revenue totaling $1 billion, we remain well
insulated from the current charter rate environment. Further, with supportive
credit markets and having secured relief from our loan-to-value test until
December 2014, our top priority is to strengthen our capital structure and
enhance our financial flexibility to create incremental value for our
shareholders. In the meantime, we will continue to utilize our cash flow to
further de-lever our balance sheet."

SELECTED FINANCIAL DATA – UNAUDITED
                                                             
(thousands of U.S. dollars)
                                                             
                   Three months   Three months   Year ended     Year ended
                    ended          ended
                   December 31,   December 31,   December 31,   December 31,
                    2012           2011           2012           2011
                                                             
Revenue            36,168         39,714         153,205        156,268
Operating Income    13,249         16,503         61,832         49,927
Net Income          8,121          10,860         31,928         9,071
Adjusted EBITDA (1) 23,315         26,579         102,175        103,703
Normalized Net      3,471          6,811          22,203         23,597
Income (1)
                                                             
(1) Adjusted EBITDA and Normalized net income are non-US Generally Accepted
Accounting Principles (US GAAP) measures, as explained further in this press
release, and are considered by Global Ship Lease to be useful measures of its
performance.Reconciliations of such non-GAAP measures to the interim
unaudited financial information are provided in this Earnings Release.

Revenue and Utilization

The 17 vessel fleet generated revenue from fixed rate long-term time charters
of $36.2 million in the three months ended December 31, 2012, down $3.5
million on revenue of $39.7 million for the comparative period in 2011 mainly
due to lower levels of charterhire on two vessels for new charters which
commenced in late September 2012.The new daily rate is $9,962 compared to
$28,500 previously. There were 16 days offhire, including 10 for a scheduled
drydocking, up four on the prior period. During the three months ended
December 31, 2012, there were 1,564 ownership days, the same as the comparable
period in 2011. The 16 days offhire in the three months ended December 31,
2012 gives a utilization of 99.0%. In the comparable period of 2011
utilization was 99.2%.

For the year ended December 31, 2012, revenue was $153.2 million, down $3.1
million on revenue of $156.3 million in the comparative period, mainly due to
lower charter rates on two vessels as noted above. Offhire days were 98,
including 82 for planned drydockings, 8 fewer days offhire than in 2011.There
were 17 additional ownership days in 2012 due to the leap year.

The table below shows fleet utilization for the three months and year ended
December 31, 2012 and 2011 and for the years ended December 31, 2011, 2010 and
2009.

                           Three months ended Year ended
                           Dec 31,   Dec 31,  Dec 31, Dec 31, Dec 31, Dec 31,
Days                        2012      2011     2012    2011    2010    2009
                                                                 
Ownership days              1,564     1,564    6,222   6,205   6,205   5,968
Planned offhire - scheduled (10)      (7)      (82)    (95)    0       (32)
drydock
Unplanned offhire           (6)       (5)      (16)    (11)    (3)     (42)
Operating days              1,548     1,552    6,124   6,099   6,202   5,894
                                                                 
Utilization                 99.0%     99.2%    98.4%   98.3%   99.9%   98.8%

The drydocking of six vessels was completed in the year ended December 31,
2012.Three drydockings are scheduled for 2013, two in 2014, and none in 2015.

Vessel Operating Expenses

Vessel operating expenses, which include costs of crew, lubricating oil,
spares and insurance, were $11.5 million for the three months ended December
31, 2012.The average cost per ownership day was $7,363 up $44, or 0.6% on
$7,319 for the rolling four quarters ended September 30, 2012.Increased spend
on repairs, maintenance and supplies have been offset by a benefit from
exchange rate movements on costs denominated in euros, fewer insurance
deductibles and lower expenses from fewer drydockings. The fourth quarter 2012
average daily cost was up $30, or 0.4% from the average daily cost of $7,333
for the fourth quarter 2011 for mainly the same reasons.

For the year ended December 31, 2012 vessel operating expenses were
essentially flat at $45.6 million or an average of $7,327 per day, compared to
$45.5 million in the comparative period or $7,336 per day.

Depreciation

Depreciation for the three months ended December 31, 2012 was $10.1 million,
the same as in the fourth quarter of 2011.

Depreciation for the year ended December 31, 2012 was $40.3 million, compared
to $40.1 million in the comparative period of 2011.

General and Administrative Costs

General and administrative costs were $1.5 million in the three months ended
December 31, 2012, compared to $1.8 million in the fourth quarter of 2011 with
the reduction due mainly to lower legal and professional fees.

For the year ended December 31, 2012, general and administrative costs were
$5.8 million compared to $7.4 million for 2011.The reduction is due mainly to
lower legal and professional fees.

Impairment Charge – 2011

Purchase options in the Company's favor to purchase two 4,250 TEU newbuildings
at the end of 2011 were to be declared by September 16, 2011 for one vessel
and October 4, 2011 for the other.The purchase of these vessels was always
predicated on achieving a strong return for shareholders by acquiring the
vessels, which had time charters attached, at an attractive price and securing
financing on favorable terms. As the Company was not able to obtain
committed finance on acceptable terms, the purchase options were allowed to
lapse and the intangible assets relating to the options were written off in
the Second Quarter 2011.

Other Operating Income

Other operating income in the three months ended December 31, 2012 was
$116,000, compared to $100,000 in the fourth quarter of 2011.

For the year ended December 31, 2012, other operating income was $0.3 million,
the same as for the comparative period.

Adjusted EBITDA

As a result of the above, Adjusted EBITDA was $23.3 million for the three
months ended December 31, 2012 down $3.3 million from $26.6 million for the
three months ended December 31, 2011.

Adjusted EBITDA for the year ended December 31, 2012 was $102.2 million, down
$1.5 million from $103.7 million in 2011.

Interest Expense

Interest expense, excluding the effect of interest rate derivatives, for the
three months ended December 31, 2012 was $5.1 million. The Company's
borrowings under its credit facility averaged $436.8 million during the three
months ended December 31, 2012. The average amount of preferred shares
outstanding throughout the three months ended December 31, 2012 was $45.0
million, giving total average borrowings through the period of $481.7 million.
Interest expense of $5.1 million in the comparative period in 2011 was due to
a lower applicable margin on higher average borrowings, including the
preferred shares, of $547.0 million.

For the year ended December 31, 2012, interest expense, excluding the effect
of interest rate derivatives, was $21.2 million.The Company's borrowings
under its credit facility and including the preferred shares, averaged $509.6
million during the year ended December 31, 2012. Interest expense for the year
ended December 31, 2011 was $20.6 million based on average borrowings in that
period, including the preferred shares, of $562.8 million.

Interest income for the three months and year ended December 31, 2012 and 2011
was not material.

Change in Fair Value of Financial Instruments

The Company hedges its interest rate exposure by entering into derivatives
that swap floating rate debt for fixed rate debt to provide long-term
stability and predictability to cash flows. As these hedges do not qualify for
hedge accounting under US GAAP, the outstanding hedges are marked-to-market at
each period end with any change in the fair value being booked to the income
and expenditure account. The Company's derivative hedging instruments gave a
realized loss of $4.7 million in the three months ended December 31, 2012 for
settlements of swaps in the period, as current LIBOR rates are lower than the
average fixed rates.Further, there was a $4.7 million unrealized gain for
revaluation of the balance sheet position given current LIBOR and movements in
the forward curve for interest rates. This compares to a realized loss of $4.8
million for the settlement of swaps and an unrealized mark-to-market gain of
$4.0 million in the three months ended December 31, 2011.

For the year ended December 31, 2012, the realized loss from hedges was $18.4
million and the unrealized gain was $9.7 million.This compares to a realized
loss of $19.4 million and an unrealized loss of $0.9 million in the year ended
December 31, 2011.

At December 31, 2012, interest rate derivatives totaled $580.0 million against
floating rate debt of $470.7 million, including the preferred shares.As a
consequence, the Company is over hedged.This arises from accelerated
amortization of the credit facility debt and not incurring additional floating
rate debt anticipated to be drawn in connection with the originally intended
purchases of the two 4,250 TEU vessels at the end of 2011.$253.0 million of
the interest rate derivatives at a fixed rate of 3.40% expire mid March
2013.The total mark-to-market unrealized loss recognized as a liability on
the balance sheet at December 31, 2012 was $35.6 million.

Unrealized mark-to-market adjustments have no impact on operating performance
or cash generation in the period reported.

Taxation

Taxation for the three months ended December 31, 2012 was a charge of $38,000,
compared to a credit of $212,000 in the fourth quarter of 2011, mainly for
movements in the deferred tax balance.

Taxation for the year ended December 31, 2012 was a charge of $0.1 million,
the same as for 2011.

Net Income/Loss

Net income for the three months ended December 31, 2012 was $8.1 million after
a $4.7 million non-cash interest rate derivative mark-to-market gain. For the
three months ended December 31, 2011 net income was $10.9 million, after $4.0
million non-cash interest rate derivative mark-to-market gain.Normalized net
income was $3.5 million for the three months ended December 31, 2012 and $6.8
million for the three months ended December 31, 2011, which excludes the
effect of the non-cash interest rate derivative mark-to-market gains.

Net income was $31.9 million for the year ended December 31, 2012 after a $9.7
million non-cash interest rate derivative mark-to-market gain. For the year
ended December 31, 2011, net income was $9.1 million after the $13.6 million
non-cash impairment charge and a $0.9 million non-cash interest rate
derivative mark-to-market loss.Normalized net income was $22.2 million for
the year ended December 31, 2012, and $23.6 million for the year ended
December 31, 2011.

Credit Facility

While the Company's stable business model largely insulates it from volatility
in the freight and charter markets, a covenant in the credit facility with
respect to the Leverage Ratio, which is the ratio of outstanding drawings
under the credit facility and the aggregate charter free market value of the
secured vessels, causes the Company to be sensitive to significant declines in
vessel values.Under the terms of the credit facility, the Leverage Ratio
cannot exceed 75%.The Leverage Ratio has little impact on the Company's
operating performance as cash flow is largely predictable under its business
model.

Due to the continuing excess supply of capacity, there has been a decline in
charter free market values of containerships in recent months. The Company
anticipated that the Leverage Ratio as at November 30, 2012 would, if tested,
exceed 75%. Therefore, it has agreed with its lenders a further waiver for two
years of the requirement to perform the Leverage Ratio test. The next
scheduled test will be as at December 1, 2014.During the waiver period, the
fixed interest margin to be paid over LIBOR is 3.75%, prepayments are based on
cash flow, subject to a minimum of $40 million on a rolling 12 month basis,
rather than a fixed amount, and dividends on common shares cannot be paid. It
has also been agreed that all secured vessels will be included in the Leverage
Ratio test, whether they are subject to a charter or not.

In the three months ended December 31, 2012, a total of $11.1 million of debt
was prepaid leaving a balance outstanding of $425.7 million. In the year ended
December 31, 2012, a total of $57.9 million of debt was prepaid.

Preferred Shares

In connection with the agreement with CMA CGM in July 2012, granting the
Company the right but not the obligation to enter new charters for Ville
d'Orion and Ville d'Aquarius on the expiry of the then current charters, the
Company redeemed $3.0 million of preferred shares held by CMA CGM, out of
restricted cash received from the exercise of warrants in 2008 and for which
the sole use is the redemption of these preferred shares.The remaining
balance outstanding of preferred shares is $45.0 million.

Dividend

Under the terms of the waiver of the requirement to perform the Leverage Ratio
test, Global Ship Lease is not currently able to pay a dividend on common
shares.

Change in Board of Directors

As of March 8, 2013, Jeffrey Pribor stepped down as a Director of the Company
in order to dedicate his time and attention to his new role at Jefferies & Co.
as Global Head of Maritime Investment Banking. Global Ship Lease's Board of
Directors now consists of four members, the majority of whom are independent.

Michael Gross, Chairman of the Company's board of Directors, commented, "We
would like to thank Jeff for his years of service and contribution as a member
of Global Ship Lease's Board of Directors. We wish him the best in his future
endeavors."

Fleet

The following table provides information, as at December 31, 2012, about the
fleet of 17 vessels chartered to CMA CGM.

                                           Remaining   Earliest   Daily
                                           Charter     Charter    Charter
Vessel           Capacity   Year    Purchase   Term ^(2)   Expiry     Rate
Name             in TEUs   Built   by GSL     (years)    Date       $
                 ^(1)
Ville d'Orion    4,113      1997    Dec 2007   0.4         May 1,     9,962
                                                           2013
Ville d'Aquarius 4,113      1996    Dec 2007   0.4         May 1,     9,962
                                                           2013
CMA CGM Matisse  2,262      1999    Dec 2007   4.0         Sept 21,   18,465
                                                           2016
CMA CGM Utrillo  2,262      1999    Dec 2007   4.0         Sept 11,   18,465
                                                           2016
Delmas Keta      2,207      2003    Dec 2007   5.0         Sept 20,   18,465
                                                           2017
Julie Delmas     2,207      2002    Dec 2007   5.0         Sept 11,   18,465
                                                           2017
Kumasi           2,207      2002    Dec 2007   5.0         Sept 21,   18,465
                                                           2017
Marie Delmas     2,207      2002    Dec 2007   5.0         Sept 14,   18,465
                                                           2017
CMA CGM La Tour  2,272      2001    Dec 2007   4.0         Sept 20,   18,465
                                                           2016
CMA CGM Manet    2,272      2001    Dec 2007   4.0         Sept 7,    18,465
                                                           2016
CMA CGM Alcazar  5,089      2007    Jan 2008   8.0         Oct 18,    33,750
                                                           2020
CMA CGM Château  5,089      2007    Jan 2008   8.0         Oct 11,    33,750
d'If                                                       2020
CMA CGM Thalassa 11,040     2008    Dec 2008   13.0        Oct 1,     47,200
                                                           2025
CMA CGM Jamaica  4,298      2006    Dec 2008   10.0        Sept 17,   25,350
                                                           2022
CMA CGM Sambhar  4,045      2006    Dec 2008   10.0        Sept 16,   25,350
                                                           2022
CMA CGM America  4,045      2006    Dec 2008   10.0        Sept 19,   25,350
                                                           2022
CMA CGM Berlioz  6,621      2011    Aug 2009   8.8         May 28,    34,000
                                                           2021
                                                                
(1) Twenty-foot Equivalent Units.
(2)As at December 31, 2012.Plus or minus 90 days (22 days for Ville d'Orion
& Ville d'Aquarius) at charterer's option.

New charters came into effect in September 2012 for Ville d'Aquarius and Ville
d'Orion.They expire May 23, 2013 plus or minus 22 days at charterer's option
and are at a rate of $9,962 per vessel per day.

Conference Call and Webcast

Global Ship Lease will hold a conference call to discuss the Company's results
for the three months ended December 31, 2012 today, Monday, March 11, 2013 at
10:30 a.m. Eastern Time. There are two ways to access the conference call:

(1) Dial-in: (866) 682-8490 or (631) 621-5256; Passcode: 14137489

  Please dial in at least 10 minutes prior to 10:30 a.m. Eastern Time to
  ensure a prompt start to the call.

(2) Live Internet webcast and slide presentation:
http://www.globalshiplease.com

  If you are unable to participate at this time, a replay of the call will be
  available through Monday, March 25, 2013 at (866) 247-4222 or (631)
  510-7499. Enter the code 14137489 to access the audio replay. The webcast
  will also be archived on the Company's website:
  http://www.globalshiplease.com.

Annual Report on Form 20F

Global Ship Lease, Inc has filed its Annual Report for 2011 with the
Securities and Exchange Commission.A copy of the report can be found under
the Investor Relations section (Annual Reports) of the Company's website at
http://www.globalshiplease.com.Shareholders may request a hard copy of the
audited financial statements free of charge by contacting the Company at
info@globalshiplease.com or by writing to Global Ship Lease, Inc, care of
Global Ship Lease Services Limited, Portland House, Stag Place, London SW1E
5RS or by telephoning +44 (0) 207 869 8806.

About Global Ship Lease

Global Ship Lease is a containership charter owner. Incorporated in the
Marshall Islands, Global Ship Lease commenced operations in December 2007 with
a business of owning and chartering out containerships under long-term, fixed
rate charters to top tier container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,349 TEU with an
average age, weighted by TEU capacity, at December 31, 2012 of 8.8 years. All
of the current vessels are fixed on charters to CMA CGM with an average
remaining term of 6.1 years, or 7.4 years on a weighted basis.

Reconciliation of Non-U.S. GAAP Financial Measures

A. Adjusted EBITDA

Adjusted EBITDA represents Net income (loss) before interest income and
expense including amortization of deferred finance costs, realized and
unrealized gain (loss) on derivatives, income taxes, depreciation,
amortization and impairment charges.Adjusted EBITDA is a non-US GAAP
quantitative measure used to assist in the assessment of the Company's ability
to generate cash from its operations. We believe that the presentation of
Adjusted EBITDA is useful to investors because it is frequently used by
securities analysts, investors and other interested parties in the evaluation
of companies in our industry.Adjusted EBITDA is not defined in US GAAP and
should not be considered to be an alternate to Net income (loss) or any other
financial metric required by such accounting principles.

ADJUSTED EBITDA - UNAUDITED
                                                                  
(thousands of U.S. dollars)
                                                                  
                                             Three   Three          
                                             months  months  Year    Year
                                             ended   ended   Ended   Ended
                                             Dec 31, Dec 31, Dec 31, Dec 31,
                                             2012    2011    2012    2011
                                                                  
Net income                                     8,121   10,860  31,928  9,071
                                                                  
Adjust: Depreciation                           10,066  10,076  40,343  40,131
       Impairment charge                      --      --      --      13,645
       Interest income                        (14)    (20)    (79)    (56)
       Interest expense                       5,091   5,136   21,178  20,564
       Realized loss on interest rate         4,663   4,788   18,402  19,393
        derivatives
       Unrealized (gain) loss on interest     (4,650) (4,049) (9,725) 881
        rate derivatives
       Income tax                             38      (212)   128     74
                                                                  
Adjusted EBITDA                                23,315  26,579  102,175 103,703

B. Normalized net income

Normalized net income represents Net income (loss) adjusted for the unrealized
gain (loss) on derivatives, the accelerated write off of a portion of deferred
financing costs and impairment charges. Normalized net income is a non-GAAP
quantitative measure which we believe will assist investors and analysts who
often adjust reported net income for non-operating items such as change in
fair value of derivatives to eliminate the effect of non cash non-operating
items that do not affect operating performance or cash generated. Normalized
net income is not defined in US GAAP and should not be considered to be an
alternate to Net income (loss) or any other financial metric required by such
accounting principles.

NORMALIZED NET INCOME --UNAUDITED
                                                          
(thousands of U.S. dollars)
                                                          
                                     Three   Three          
                                     months  months  Year    Year
                                     ended   ended   ended   ended
                                     Dec 31, Dec 31, Dec 31, Dec 31,
                                     2012    2011    2012    2011
                                                          
                                                          
                                                          
Net income                             8,121   10,860  31,928  9,071
                                                          
Adjust: Change in value of derivatives (4,650) (4,049) (9,725) 881
       Impairment charge              --      --      --      13,645
                                                          
Normalized net income                  3,471   6,811   22,203  23,597

Safe Harbor Statement

This communication contains forward-looking statements. Forward-looking
statements provide Global Ship Lease's current expectations or forecasts of
future events. Forward-looking statements include statements about Global Ship
Lease's expectations, beliefs, plans, objectives, intentions, assumptions and
other statements that are not historical facts. Words or phrases such as
"anticipate," "believe," "continue," "estimate," "expect," "intend," "may,"
"ongoing," "plan," "potential," "predict," "project," "will" or similar words
or phrases, or the negatives of those words or phrases, may identify
forward-looking statements, but the absence of these words does not
necessarily mean that a statement is not forward-looking. These
forward-looking statements are based on assumptions that may be incorrect, and
Global Ship Lease cannot assure you that these projections included in these
forward-looking statements will come to pass. Actual results could differ
materially from those expressed or implied by the forward-looking statements
as a result of various factors.

The risks and uncertainties include, but are not limited to:

  *future operating or financial results;
  *expectations regarding the future growth of the container shipping
    industry, including the rates of annual demand and supply growth;
  *the financial condition of CMA CGM, our sole charterer and only source of
    operating revenue, and its ability to pay charterhire in accordance with
    the charters;
  *Global Ship Lease's financial condition and liquidity, including its
    ability to obtain additional waivers which might be necessary under the
    existing credit facility or obtain additional financing to fund capital
    expenditures, vessel acquisitions and other general corporate purposes;
  *Global Ship Lease's ability to meet its financial covenants and repay its
    credit facility;
  *Global Ship Lease's expectations relating to dividend payments and
    forecasts of its ability to make such payments including the availability
    of cash and the impact of constraints under its credit facility;
  *future acquisitions, business strategy and expected capital spending;
  *operating expenses, availability of crew, number of off-hire days,
    drydocking and survey requirements and insurance costs;
  *general market conditions and shipping industry trends, including charter
    rates and factors affecting supply and demand;
  *assumptions regarding interest rates and inflation;
  *changes in the rate of growth of global and various regional economies;
  *risks incidental to vessel operation, including piracy, discharge of
    pollutants and vessel accidents and damage including total or constructive
    total loss;
  *estimated future capital expenditures needed to preserve its capital base;
  *Global Ship Lease's expectations about the availability of ships to
    purchase, the time that it may take to construct new ships, or the useful
    lives of its ships;
  *Global Ship Lease's continued ability to enter into or renew long-term,
    fixed-rate charters;
  *the continued performance of existing long-term, fixed-rate time charters;
  *Global Ship Lease's ability to capitalize on its management's and board of
    directors' relationships and reputations in the containership industry to
    its advantage;
  *changes in governmental and classification societies' rules and
    regulations or actions taken by regulatory authorities;
  *expectations about the availability of insurance on commercially
    reasonable terms;
  *unanticipated changes in laws and regulations including taxation;
  *potential liability from future litigation.

Forward-looking statements are subject to known and unknown risks and
uncertainties and are based on potentially inaccurate assumptions that could
cause actual results to differ materially from those expected or implied by
the forward-looking statements. Global Ship Lease's actual results could
differ materially from those anticipated in forward-looking statements for
many reasons specifically as described in Global Ship Lease's filings with the
SEC. Accordingly, you should not unduly rely on these forward-looking
statements, which speak only as of the date of this communication. Global Ship
Lease undertakes no obligation to publicly revise any forward-looking
statement to reflect circumstances or events after the date of this
communication or to reflect the occurrence of unanticipated events. You
should, however, review the factors and risks Global Ship Lease describes in
the reports it will file from time to time with the SEC after the date of this
communication.

Global Ship Lease, Inc.

Interim Unaudited Consolidated Statements of Income

(Expressed in thousands of U.S. dollars except share data)
                                                     
                          Three months ended December Year ended December 31,
                           31,
                          2012          2011          2012        2011
                                                               
                                                               
Operating Revenues                                              
Time charter revenue       $36,168      $39,714      $153,205   $156,268
                                                               
                                                               
Operating Expenses         11,515        11,470        45,588      45,517
Vessel operating expenses
Depreciation               10,066        10,076        40,343      40,131
General and administrative 1,454         1,765         5,784       7,384
Impairment charge          --            --            --          13,645
Other operating (income)   (116)         (100)         (342)       (336)
                                                               
Total operating expenses   22,919        23,211        91,373      106,341
                                                               
                                                               
Operating Income           13,249        16,503        61,832      49,927
                                                               
Non Operating Income                                            
(Expense)
Interest income            14            20            79          56
Interest expense           (5,091)       (5,136)       (21,178)    (20,564)
Realized loss on interest  (4,663)       (4,788)       (18,402)    (19,393)
rate derivatives
Unrealized gain (loss) on  4,650         4,049         9,725       (881)
interest rate derivatives
                                                               
                                                               
Income before Income Taxes 8,159         10,648        32,056      9,145
                                                               
Income taxes               (38)          212           (128)       (74)
                                                               
Net Income                 $ 8,121      $ 10,860     $31,928    $ 9,071
                                                               
                                                               
                                                               
Earnings per Share                                              

Weighted average number of
Class A common shares                                           
outstanding
Basic                      47,481,864    47,460,969    47,481,766  47,262,549
Diluted                    47,656,019    47,460,969    47,633,991  47,448,012
                                                               
Net income in $ per Class                                       
A common share
Basic                      $0.17        $0.23       $ 0.67     $ 0.19
Diluted                    $0.17        $0.23        $0.67      $0.19
Weighted average number of                                      
Class B common shares                                           
outstanding
Basic and diluted          7,405,956     7,405,956     7,405,956   7,405,956
                                                               
Net income in $ per Class                                       
B common share
Basic and diluted          $nil       $nil       $nil     $nil




Global Ship Lease, Inc.

Interim Unaudited Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)
                                                                
                                                    December 31, December 31,
                                                     2012         2011
                                                                
Assets                                                           

Cash and cash equivalents                            $26,145     $25,814
Restricted cash                                      3            3,027
Accounts receivable                                  14,413       13,911
Prepaid expenses                                     795          726
Other receivables                                    1,165        839
Deferred tax                                         --           19
Deferred financing costs                             1,493        1,168
                                                                
Total current assets                                 44,018       45,504
                                                                
                                                                
Vessels in operation                                 856,394      890,249
Other fixed assets                                   29           54
Intangible assets - other                            73           92
Deferred tax                                         --           10
Deferred financing costs                             3,166        3,626
                                                                
Total non-current assets                             859,662      894,031
                                                                
Total Assets                                         $903,680    $ 939,535
                                                                
Liabilities and Stockholders' Equity                             
                                                                
Liabilities                                                      

Current portion of long term debt                    $50,572     $46,000
Intangible liability – charter agreements            2,119        2,119
Accounts payable                                     5,353        1,286
Accrued expenses                                     5,419        4,953
Derivative instruments                               12,225       15,920
                                                                
Total current liabilities                            75,688       70,278
                                                                
                                                                
Long term debt                                       375,104      437,612
Preferred shares                                     44,976       48,000
Intangible liability – charter agreements            17,931       20,050
Deferred tax liability                               27           
Derivative instruments                               23,366       29,395
                                                                
Total long-term liabilities                          461,404      535,057
                                                                
                                                                
Total Liabilities                                    $537,092    $605,335
                                                                
                                                                
Stockholders' Equity                                             

Class A Common stock – authorized                                
214,000,000 shares with a $0.01 par value;                       
47,481,864 shares issued and outstanding (2011 –     $475        $475
47,463,978)
Class B Common stock – authorized                                
20,000,000 shares with a $0.01 par value;                        
7,405,956 shares issued and outstanding (2011 –      74           74
7,405,956)
                                                                
Additional paid in capital                           352,316      351,856
Retained earnings (accumulated deficit)              13,723       (18,205)
                                                                
Total Stockholders' Equity                           366,588      334,200
                                                                
Total Liabilities and Stockholders' Equity           $903,680    $939,535




Global Ship Lease, Inc.

Interim Unaudited Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. dollars)
                                                     
                      Three months ended December 31, Year ended December 31,
                      2012            2011            2012        2011
                                                               
                                                               
Cash Flows from                                                 
Operating Activities
Net income             $ 8,121       $ 10,860       $31,928    $9,071
                                                               
Adjustments to
Reconcile Net Income
to Net Cash Provided                                            
by Operating
Activities
Depreciation           10,066          10,076          40,343      40,131
Impairment charge      --              --              --          13,645
Amortization of
deferred financing     337             313             1,250       1,101
costs
Change in fair value
of certain derivative  (4,650)         (4,049)         (9,725)     881
instruments
Amortization of        (530)           (530)           (2,119)     (2,119)
intangible liability
Settlements of hedges
which do not qualify   4,663           4,788           18,402      19,393
for hedge accounting
Share based            82              109             460         565
compensation
Increase in other
receivables and other  (7,282)         (7,365)         (810)       (6,952)
assets
Increase (decrease) in
accounts payable and   4,063           (3,124)         3,958       (823)
other liabilities
Unrealized foreign     (1)             (14)            11          (21)
exchange (gain) loss
                                                               
Net Cash Provided by   14,869          11,064          83,698      74,872
Operating Activities
                                                               
Cash Flows from                                                 
Investing Activities
Settlements of hedges
which do not qualify   (4,663)         (4,788)         (18,402)    (19,393)
for hedge accounting
Cash paid for other    --              (2)             --          (59)
fixed assets
Cash paid to acquire   --              --              --          (97)
intangible assets
Costs relating to      (1,184)         (2,666)         (5,914)     (7,705)
drydockings
                                                               
Net Cash Used in       (5,847)         (7,456)         (24,316)    (27,254)
Investing Activities
                                                               
Cash Flows from                                                 
Financing Activities
Repayments of debt     (11,080)        (15,341)        (57,936)    (49,157)
Issuance costs of debt (1,115)         (1,007)         (1,115)     (1,007)
Variation in           --              --              3,024       --
restricted cash
Repayment of preferred --              --              (3,024)     --
shares
                                                               
Net Cash Used in       (12,195)        (16,348)        (59,051)    (50,164)
Financing Activities
                                                               
Net (Decrease)
Increase in Cash and   (3,173)         (12,740)        331         (2,546)
Cash Equivalents
Cash and Cash
Equivalents at start   29,318          38,554          25,814      28,360
of Period
                                                               
Cash and Cash
Equivalents at end of  $26,145     $25,814     $ 26,145  $ 25,814
Period
                                                               
                                                               
Supplemental                                                    
information
                                                               
Total interest paid    $4,691     $4,673         $20,105    $19,518
                                                               
Income tax paid        $19          $13            $69    $144
                                                               

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         David Burke
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